RP portfolio falls 29 percent

RP portfolio falls 29 percent

MANILA: Foreign portfolio flows into the Philippines fell 29
percent from a year ago to US$104.4 million in November on
concerns about a possible sovereign credit rating downgrade, the
central bank said on Monday.

The figure stood at US$147.7 million in November 2003.

For the 11 months to November, portfolio inflows reached
$626.9 million, barely changed from $625.5 million in the same
period last year. Inflows had been rising since August.

"There are concerns of a possible two-notch downgrade,"
central bank governor Rafael Buenaventura said, referring to the
sovereign credit rating. He said this was unfortunate given the
high level of liquidity in the regional market.

Last week, London-based Fitch Ratings affirmed the
Philippines' BB rating on long-term foreign currency and BB-plus
rating on long-term local currency, but revised its outlook to
negative from stable. -- AFP